The 10-second takeaway
For the quarter ended March 31 (Q1), PC Connection beat slightly on revenues and beat expectations on earnings per share.
Compared with the prior-year quarter, revenue grew and GAAP earnings per share increased significantly.
Margins expanded across the board.
PC Connection reported revenue of $498.8 million. The one analyst polled by S&P Capital IQ predicted net sales of $490.6 million on the same basis. GAAP reported sales were 8.0% higher than the prior-year quarter's $461.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.23. The one earnings estimate compiled by S&P Capital IQ predicted $0.21 per share. GAAP EPS of $0.21 for Q1 were 24% higher than the prior-year quarter's $0.17 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 13.4%, 70 basis points better than the prior-year quarter. Operating margin was 2.0%, 30 basis points better than the prior-year quarter. Net margin was 1.1%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $533.6 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $2.17 billion. The average EPS estimate is $1.25.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 113 members out of 132 rating the stock outperform, and 19 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give PC Connection a green thumbs-up, and five give it a red thumbs-down.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.